Even Ibbotson can be challenged by aggressive defense counsel
Two related cases (Metro Tech Corp. v. TUV Rheinland of N.A., 2010 WL 4117123 (D. Puerto Rico.)(Oct. 18, 2010); and Metro Tech Corp. v. TUV Rheinland of N.A., 2010 WL 4117115 (D. Puerto Rico.)(Oct. 18, 2010)) show how far opposing counsel will go to discredit the testimony of a financial expert. In this case, the [...]
Butler Pinkerton Calculator passes a Daubert challenge
The BPC passed its first Daubert challenge in mid-December 2010 in Alamar Ranch, LLC v. County of Boise, a decision by the United States District Court (Idaho)(Civil Case No. 1:09-cv-00004 BLW). In response to the challenge, Peter Butler (Valtrend) submitted an affidavit listing the numerous instances of independent peer comments, articles, speaking engagements as evidence [...]
Delaware Chancery opines on many of the most litigated business valuation issues
In the latest “must read” statutory fair value appraisal from the Delaware Chancery Court, the decision (by V.C. Strine) tackles such critical valuation topics as deference to the market price, determination of the terminal growth rate, historic versus supply-side equity risk premium (ERP), and selection of appropriate beta. All of these issues have been litigated [...]
Implied minority discounts: not just a Delaware problem
A recent case in federal district court demonstrates the confusion that still clouds the concept of an implied minority discount. In Kaplan v. First Hartford Corp., 2009 WL 737681 (D. Me. 2009), a statutory fair value appraisal action, the company’s expert argued strongly in support of an implied minority discount (IMD): I understand that the [...]
Court increases discount rate to reflect current market conditions
Miller Bros. Coal v. Consol of Kentucky, Inc, 2009 WL 4904032 (Bkrtcy. E.D. Ky.))(Dec. 11, 2009) Cases on the appropriate discount rate are relatively rare, so even this brief discussion by a federal bankruptcy court provides current guidance to lawyers on how current economic conditions may impact value. Downturn is not an ‘act of God.’ [...]
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